Holding bonds whose maturities are spread out in steps
Maturities are staggered a year apart so that something matures every year. The cash that comes back is reinvested at whatever rate applies then. Whether rates rise or fall the portfolio drifts toward an average level, which removes the need to pick one moment to buy.
Splitting 1,000,000 across five years matures 200,000 each year to roll into the current yield.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.